The company released its semi-annual report. Revenue for the first half of the year was 544 million yuan, up 134.24% year on year, net profit was 82 million yuan, up 309% year on year, net profit after deducting non-return mother increased 343% year on year, and EPS 0.44. Revenue for the second quarter was 368 million yuan, up 109% month on month, and net profit was 60 million yuan, up 173% month on month. The company also predicts that the net profit for January to September 2017 will be 137-143 million, an increase of 251-265%, which translates into a quarterly net profit of 0.55 to 61 million yuan for the third quarter, an increase of 189%-221% over the previous year. The sustainability of performance is mainly due to the fact that the company's 3C+ lithium battery intelligent automation equipment business layout has achieved remarkable results, and the performance has been gradually released. The company attaches importance to R&D investment, which has played an important role in promoting the upgrading and innovation of the company's products and technology, and has become a driving force for the company to achieve performance growth. New lithium battery equipment products have brought performance growth points: The lithium battery PACK automatic assembly production line R&D project is in the prototype trial production stage, and business negotiations have already been held with intended customers. It is expected that the lithium battery PACK automatic assembly line will become one of the company's new profit growth points in the next year; Polar ear laser cutting equipment has completed prototype testing and achieved zero order breakthroughs, and customers have reported that all technical parameters are normal. Jiyin Technology is closely following the development trend of OLED and is collaborating with customers to develop module equipment for OLED production lines. Downstream demand is in short supply, and the construction of an intelligent equipment industrial park guarantees room for future growth. As a system solution provider for high-end intelligent equipment, fully automatic production lines, and new materials in the fields of PCB, LED, LCD, lithium batteries, elevators, compressors, etc., the company's current production capacity is insufficient to support rapid development in the future, and expanding production capacity has become an urgent need. The company plans to invest 350 million dollars in the first half of the year to prepare the Dongguan Intelligent Equipment Industrial Park, build an unmanned workshop, and integrate the subsidiary's 3C equipment and materials. It is expected that production capacity will be fully put into operation in July 2018. Production capacity will increase 2-3 times after production is put into operation, increase the market share and influence of the company's products, and accelerate the company to become China's leading supplier of intelligent equipment, high-end materials and solutions. There are sufficient orders for mergers and acquisitions of subsidiaries, and it is expected that the performance commitment target can be fulfilled. In the first half of the year, Jiyin Technology achieved net profit of 21.77 million yuan and promised net profit of 60.84 million yuan this year. The operating conditions are good, and there is full confidence in achieving this year's performance goals. In the first half of the year, Peng Yuwei achieved operating income of 57.24 million yuan and net profit of 24.55 million yuan. Net profit of 32.5 million yuan and 42.25 million yuan was promised in 2017 and 2018. Currently, there are enough orders in hand, and it is expected that the target can be exceeded. In the first half of the year, Xuanshuo Intelligent Manufacturing achieved a net profit of 7.8339 million yuan, down from the same period in the first half of last year. Mainly, the delivery and acceptance cycle for large orders was long, and the revenue recognition conditions had not been met by the end of the reporting period. Xuanshuo Optoelectronics promised net profit of not less than 46.8 million yuan and 60.84 million yuan in 2017 and 2018. The company's gross profit margin for the first half of the year was 37.71%, down 0.5 percentage points from the previous year. The year-on-year decline in gross margin of PCB precision processing testing equipment and LCD module automated assembly machine testing equipment was mainly due to low sales pricing for newly developed customers in order to quickly occupy new markets. Net profit for the first half of the year was 15.03%, up 3 percentage points from the end of 2016. The company's period fee rate was 19.89%, down 7 percentage points from the end of 2016. It can be seen that the company has been very effective in integrating mergers and acquisitions, and has achieved an increase in net profit. Profit forecast: Net profit of 210 million yuan, 3.1 billion yuan, and EPS is 1.06 yuan and 1.57 yuan in 2017 and 2018, corresponding to PE 34 times and 23 times. Considering that the company benefits from high-end intelligent equipment solution providers, benefits from increased demand in industries such as OLED, lithium battery equipment, elevators, smart home appliances, etc., and focuses on product research and development, the commissioning of the Intelligent Equipment Industrial Park in the second half of next year will lead to an exponential increase in production capacity, we give a recommended rating. Risk warning: The performance of the merger and acquisition company falls short of the expected risk; the intelligent equipment industrial park construction process falls short of the expected risk.